U.S. stocks set for subdued open as investors eye retail’s health

U.S. stock futures were listless Friday, as signs of pain in the retail sector put a monthly retail sales report and consumer sentiment index in the spotlight for Federal Reserve-watching investors.

Strong jobs data has fed expectations for a December rate hike by the Federal Reserve, which in turn spurred a rout on Wall Street Thursday.

October retail sales data out Friday is the “next big test” for the Fed, said Craig Erlam, senior market analyst at Oanda.

“The consumer is extremely important for the U.S. economy and so far this year, it has been quite reserved, despite the boost to disposable income from lower oil prices,” he said in a note Friday. “As wages pick up, we should expect to see spending pick up as well, the problem being that wage growth has been quite subdued so far.”

Investors will also get hints on consumer health from a widely watched consumer-sentiment index, as well as from quarterly results from department store chain J.C. Penney.

Late Thursday, high-end department store Nordstrom Inc. JWN, +1.85% cut its profit forecast as quarterly earnings dropped, which sent shares plunging 20%. They continued to fall in premarket trade Friday.

Data: The Commerce Department‘s October retail sales report is due at 8:30 a.m. Eastern Time. Analysts expect a rise of 0.4%. The University of Michigan’s consumer-sentiment index is slated for release at 10 a.m. Eastern.

Before the bell, J.C. Penney JCP, +3.17% is expected to report third-quarter earnings. Analysts expect the retailer to post a narrower quarterly loss of 55 cents a share. Sales are projected to rise to $2.88 billion.

Oil prices CLZ5, +0.96% edged higher, but traded close to their lowest level since late August. Gold prices GCZ5, +0.48% nudged up roughly $2 to $1,083 an ounce